Nissan’s full-year profit falls short of estimates due to lower-than-expected sales

Nissan Motor Co. reported a full-year operating profit of ¥530 billion ($3.4 billion), which was 15% lower than its forecast just two months ago due to sales falling short of expectations. Sales for the year were 3.44 million units, lower than the forecast of 3.55 million, reflecting challenges in the market such as an aging lineup, lack of hybrid options in North America, and increased competition in China.

Factors such as an earthquake in Japan and other logistics issues also impacted sales, contributing to the lower-than-expected net income of ¥370 billion for the 12 months ending March 31, compared to the forecast of ¥390 billion in February. CEO Makoto Uchida attributed the sales decline to unexpected growth in hybrid demand in the US and the costs of supplier investments based on previous sales targets.

In an effort to boost sales and address market challenges, Nissan recently announced plans to sell an additional 1 million vehicles annually by 2027, introducing more EV models and partnering with Honda Motor Co. to develop EV technology. The weakening yen, trading near a 34-year low, is seen as a positive foreign-exchange impact for Nissan, with CFO Stephen Ma stating that the company’s dividend policy remains unchanged for now.

Overall, Nissan’s financial performance is reflective of the evolving automotive market landscape, with the company adapting its strategies to meet changing consumer preferences and technological advances. The details of Friday’s statement can be accessed for further information on the company’s future plans and financial outlook.